Icelandair Makes Airbus Shift With A321XLR Order

Icelandair has finalized a purchase agreement for Airbus A321XLR aircraft to be delivered starting in 2029, firming up a memorandum of understanding (MOU) signed in April. 

The airline also finalized long-term lease agreements with SMBC Aviation Capital for four new A321LRs, which will join its fleet starting in 2024.  

The move marks a shift for the North Atlantic operator. Its current fleet is made up of Boeing aircraft including 737-8s and 9s, older 757-200s, 757-300s and 767-300ERs, as well as De Havilland Canada Dash 8 turboprops on regional routes.   

Under the new agreement with Airbus, Icelandair has a firm order for 13 A321XLRs and purchase rights for up to 12 additional aircraft. Deliveries will start in 2029. 

The A321XLR completed its first flight in 2022 and is due to enter service in 2024 as the longest-range single-aisle aircraft in production, with a range of 4,700 nm.  

The financing of the aircraft is yet to be determined but the airline will explore financing options closer to the delivery dates, Icelandair said July 6.  

The lease agreements with SMBC Aviation Capital apply to four new A321LR aircraft, scheduled to be delivered from Airbus in the fourth quarter of 2024. 

“A321XLR aircraft will further strengthen our business model, increase our flexibility, and provide opportunities for future growth, as well as further support our sustainability efforts,” Icelandair President and CEO Bogi Nils Bogason said.

“We extend our heartfelt gratitude to Icelandair for placing their trust and confidence in Airbus,” Airbus Chief Commercial Officer and Head of Airbus International Christian Scherer said. “By harnessing the exceptional performance of the A321XLR, your airline is forging a path of sustainable growth with remarkable efficiency and a significant reduction in CO₂ emissions.”